| When a homeowner has not made loan payments on | | | | there are likely attorney and/or subscriptions fees |
| his or her home as promised and the bank (or other | | | | connected to pre foreclosure information. |
| mortgage lender) has started foreclosure proceedings, | | | | When buying a pre foreclosure home or property, |
| the home goes into a "pre foreclosure" stage. What | | | | there are some special rules that apply. Because the |
| this means is that the homeowner has received | | | | homeowner still holds the contract, the buyer must |
| notification from the lender that he or she is in default | | | | submit a written contract directly to the owner (not the |
| and the first stage of foreclosure activity has been | | | | bank or other mortgage lender.) The buyer can then |
| initiated. He or she still owns the home until all state | | | | work with the owner in any way that he or she |
| laws and legal matters have been thoroughly | | | | chooses. The owner can be asked if the home is in |
| evaluated. Pre foreclosure leads are available for | | | | good condition. In other words, are the plumbing, roofing |
| investors who are looking for homes and other | | | | and electrical systems working well or is there major |
| properties before they are taken over by a bank. | | | | repair work that needs to be done? Homeowners are |
| Leads on homes that are in the initial stages of default | | | | well acquainted with their own homes and will honestly |
| are available through many sources. A potential buyer | | | | try to give the buyer as much information as they can. |
| can look in local newspapers where Notices of Default | | | | They would rather sell their home to an investor at this |
| are published for public review. There are also many | | | | stage and avoid bank foreclosure altogether. Pre |
| online websites that offer subscriptions to people | | | | foreclosure leads work well to help not only the home |
| wanting to review the latest listings. Another way to | | | | owner, but also the investor because the home can be |
| get a heads up is to contact an attorney who | | | | purchased before it has gone into the more serious |
| specializes in repossessed homes and properties. | | | | stages of foreclosure by the bank. |
| What the investor needs to realize, however, is that | | | | |